What is Equipment Breakdown Coverage?

Pennsylvania and New Jersey homeowners insurance policies cover fire, wind damage, and water damage from plumbing leaks. Today’s household appliances, heaters, and air conditioning equipment gets more costly to repair, and most likely the big repairs will not be covered by homeowners insurance. Off-the-shelf policies exclude flooding and breakdown of systems and appliances.  Many home insurance carriers now offer an added coverage - Equipment Breakdown Endorsement.


You can add this endorsement for around $50 per year.


What Does the Equipment Breakdown Endorsement Cover?

The insurance companies we work with have variations on what is covered and what is NOT covered. Nevertheless, most cover the cost to repair or replace items hit by mechanical or electrical failure. Think air conditioning, heating

systems, appliances, electronics, smart devices and more.


Some examples

  • Your dishwasher breaks down when the motor burns out.
  • A central air conditioner compressor fails.
  • The back-up generator or water heater break.
  • Your smart home monitoring system stops working.


What is the Coverage Limit on Homeowners Equipment Breakdown?


Insurance company coverage varies, but many have a $100,000 limit for claims. This is enough to cover almost any system in Pennsylvania and New Jersey homes.


Does a Deductible Apply to Equipment Breakdown?


Yes. Usually it is different than your regular homeowners policy deductible. $500 is a common deductible on homeowners Equipment Breakdown Endorsements.


What’s Not Covered by Equipment Breakdown?


Wear and tear or gradual deterioration are never covered. Everything eventually fails. Do not expect insurance to pay for items past their useful life. For example, if your 30-year old air conditioning compressor dies. The insurance company will likely deny your claim.  Other exclusions apply to all homeowners policies. Examples include intentional damage; flood; or seepage through a foundation.


Homeowners Equipment Breakdown Coverage vs. Home Warranty


Many new homebuyers buy a home warranty when they invest in a home. Home warranties help guard against big expenses in the first few years of ownership. They pay the cost of repairing or replacing major appliances or equipment.

Unlike Equipment Breakdown insurance, home warranties usually pay for wear and tear. That is why home warranty coverage is much more expensive than equipment breakdown coverage. Equipment breakdown often costs less than $50 a year. Home warranties can cost $50 or more per month.


Should I Buy Homeowners Equipment Breakdown Coverage?


You might purchase breakdown coverage on your homeowners if:

  • Your home or most of its equipment is newer.
  • The coverage is inexpensive.

You might NOT want to buy homeowners Equipment Breakdown coverage if:

  • You already have a home warranty
  • Your home’s equipment is older and you’re worried about breakdown due to wear and tear.


When was the last time your reviewed your home insurance coverages? Has your home insurance cost

increased dramatically?  Dtown Insurance is here to help! Contact us today and we will review your coverages!


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Pennsyvania's Distracted Driving Law - Paul Miller's Law

June 4, 2026
Pennsylvania's Distracted Driving Law Effective June 5, 2026, the penalty is a summary offense with a $50 fine, plus court costs and other fees. Pennsylvania’s hands-free law may be referred to as Paul Miller’s Law. Paul Miller was killed in 2010 when a distracted driver crossed a center grass divider and traveled head-on into Paul’s car. If a driver is convicted of homicide by vehicle and driving while distracted, they may be sentenced up to an additional five years in prison. As a primary offense, drivers can be stopped by police if they have a mobile device in their hand while driving.  The law: Defines an interactive mobile device as a handheld wireless telephone, personal digital assistant, smart phone, portable or mobile computer, or similar device which can be used for voice communication, texting, emailing, browsing the Internet, instant messaging, playing games, taking or transmitting images, recording or broadcasting videos, creating or sharing social media or otherwise sending or receiving electronic data. Defines driving as operating a motor vehicle on a highway, including anytime the motor vehicle is temporarily stationary because of traffic, a traffic control device (e.g., a traffic light or stop sign), or other momentary delay. Defines the use of an interactive mobile device as using at least one hand to hold, or supporting with another part of the body, an interactive mobile device, dialing or answering an interactive mobile device by pressing more than a single button, or reaching for an interactive mobile device that requires a driver to maneuver so that the driver is no longer in a seated driving position, restrained by a seat belt. A driver may use an interactive mobile device if the driver moves the vehicle to the side of or off a highway and halts in a location where the vehicle can safely remain stationary. The hands-free law allows for an emergency use exception if it is necessary to communicate with a law enforcement official or other emergency service to prevent injury to persons or property. Pennsylvania's Texting-While-Driving Ban The law prohibits as a primary offense any driver from using an interactive mobile device to send, read or write a text-based communication while his or her vehicle is in motion. Defines an interactive mobile device as a handheld wireless telephone, personal digital assistant, smart phone, portable or mobile computer or similar device which can be used for voice communication, texting, emailing, browsing the Internet, instant messaging, playing games, taking or transmitting images, recording or broadcasting videos, creating or sharing social media or otherwise sending or receiving electronic data. Defines a text-based communication as a text message, instant message, email or other written communication composed or received on an interactive mobile device. Makes clear that this law supersedes and preempts any local ordinances restricting the use of interactive wireless devices by drivers. " Faces of Distracted Driving " is an online photo series exploring the tragic consequences of texting and cell phone use behind the wheel by sharing the stories of people from across the country who have been injured or lost loved ones in distracted driving crashes. Click here to view "Faces of Distracted Driving." Dtown Insurance agents have many years of experience in auto insurance. Our agents prioritize getting you the right coverage for the best price available. One of the best auto insurance carriers we work is AAA, one of the country’s largest and most reputable insurance carrier in the United States. Call today
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